Day: February 13, 2022

Analysts name 3 small cap ASX tech shares with major upside potential

Looking for some small cap tech shares to buy? Then have a look at the ones listed below.

Here’s why they could be worth getting better acquainted with:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap to watch is Bigtincan. It is a provider of enterprise mobility software that allows sales and service organisations to improve mobile worker productivity through smart devices. Management highlights that businesses such as Nike, Prudential, and Starwood Hotels trust Bigtincan to enable customer-facing teams to intelligently prepare, engage, measure and continually improve the buying experience for their customers.

Morgan Stanley has an overweight rating and $2.10 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another small cap to watch is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its increasingly popular Nitro Productivity Suite. This suite provides businesses with integrated PDF productivity and electronic signature tools. A testament to the quality of its software is that a number of the largest companies in the world use it. This includes over half of the Fortune 500.

Bell Potter is a fan of Nitro. It currently has a buy rating and $3.25 price target on its shares.

Serko Ltd (ASX: SKO)

Serko could be a small cap share to watch very closely now the travel market recovery is underway. It is an online travel booking and expense management provider with a number of quality solutions that have large market opportunities. Another positive is that it recently signed a deal with US online travel booker Booking.com. This has the potential to be a game-changer over the coming years as the travel giant migrates its customers onto the Serko platform.

Ord Minnett recently retained its buy rating with a $7.93 price target.

The post Analysts name 3 small cap ASX tech shares with major upside potential appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BIGTINCAN FPO and Serko Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Nitro Software Limited, and Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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3 fantastic ASX 200 growth shares to buy

happy investor, share price rise, increase, up

happy investor, share price rise, increase, uphappy investor, share price rise, increase, up

If you’re looking for growth shares, then look no further. Listed below are three ASX 200 growth shares which have been tipped for strong growth in the future.

Here’s why analysts rate them as buys:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Sage, Kambrook, Baratza, and eponymous Breville brands. Thanks to its investment in product development, these brands have been resonating well with consumers for many years. This has underpinned consistently solid sales and earnings growth. And with the company benefiting from favourable industry tailwinds and continuing to grow its footprint globally, the future looks bright for Breville.

Morgan Stanley is a very positive on Breville. The broker currently has an overweight rating and $36.00 price target on its shares. The broker believes a recent update from rival DeLonghi demonstrates strong industry demand.

Life360 Inc (ASX: 360)

Another ASX growth share to look at is Life360. This growing technology company is responsible for the Life360 mobile app. This market leading app is for families and offers useful features such as communications, driver safety, and location sharing. As of its last update, the company’s user base had reached over 30 million globally. This is generating significant recurring revenues and opens the door to material cross and upselling opportunities for its recently acquired businesses. These are wearables company Jiobit and items tracking company Tile.

Bell Potter is bullish on the company’s future. It currently has a buy rating and $13.51 price target on its shares. Its analysts believe its “share price [is] set for a 180.”

NEXTDC Ltd (ASX: NXT)

A final ASX 200 growth share that could be a buy is NEXTDC. If is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud. Especially given its world class network of data centres and its expansion into edge centres. The company also has its eyes on the Asia market and has opened up offices in a couple of key markets.

Citi is a fan and currently has a buy rating and $15.40 price target on NEXTDC’s shares. It believes the company’s Asian expansion is nearing following positive developments in Singapore this month.

The post 3 fantastic ASX 200 growth shares to buy appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro owns Life360, Inc. and NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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At today’s share price, is BHP (ASX:BHP) going to be a dividend juggernaut in 2022?

Female miner smiling with mining machinery in the background.

Female miner smiling with mining machinery in the background.Female miner smiling with mining machinery in the background.

At the current BHP Group Ltd (ASX: BHP) share price, could it be a juggernaut for dividends in 2022?

BHP is one of the biggest dividend payers on the ASX. With the business unifying its UK and Australia business onto the ASX, it’s probably going to be paying the biggest dividend to shareholders (in total dollar terms).

But investors just need to know about the dividend yield on a single BHP share basis and what that means for their portfolio.

How big will the BHP dividend yield be in 2022?

There are different estimates for how big the dividend is going to be for FY22.

Commsec numbers suggest the FY22 dividend is going to be $3.78 per share. That translates into a grossed-up dividend yield of 11%.

Macquarie thinks that BHP will have a FY22 grossed-up dividend yield of 10%. Citi believes that BHP is going to pay a grossed-up dividend yield of 11.3%.

BHP is benefiting from a strong environment for many of its commodities. The iron ore price is steadily climbing. Oil has recovered from the COVID crash. There is an expectation of strong long-term demand for copper and nickel as the world decarbonises.

The S&P/ASX 200 Index (ASX: XJO) resources giant earns its revenue by producing vast amounts of commodities and selling them. Higher resource prices largely translate into extra profit, aside from paying the necessary government taxes. Higher earnings can help the BHP share price and the dividend.

Production remains strong

The company is taking advantage of the higher prices by continuing to achieve high levels of production volume.

In the six months to December 2021, copper production was down 12% to 742kt, but the company said that was due to lower volumes at Olympic Dam due to the planned smelter maintenance campaign, which was completed in January 2022.

The iron ore half-year production was up by 1% to 129.4 mt thanks to strong supply chain performance, increased ore car availability and the continued ramp-up of South Flank.

Petroleum production rose 5% year on year to 53.2 million barrels of oil equivalent.

Oil to be replaced by potash

BHP is on track to divest its oil business to Woodside Petroleum Limited (ASX: WPL).

But it’s planning to grow with another commodity – potash. This is a type of fertiliser that is used to boost land productivity, but it is meant have lower emissions than alternatives.

The commodity giant says that potash provides BHP with increased leverage to key global mega-trends including a rising population, changing diets, decarbonisation and improving environmental stewardship.

Jansen is the name of the project which comes with a series of high-returning growth options. It’s expected to generate an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 70%. It’s expected to become one of the world’s largest potash operations.

Potash could play a major part in influencing the BHP share price and dividend in the coming decades.

The post At today’s share price, is BHP (ASX:BHP) going to be a dividend juggernaut in 2022? appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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2 of the ‘best’ ASX shares to buy right now

best asx shares represented by best in show ribbon

best asx shares represented by best in show ribbonbest asx shares represented by best in show ribbon

Investors that are looking for some new ASX shares to buy might want to consider the two listed below.

These ASX shares have been named among the best picks by a leading broker. Here’s what Morgans is saying about them:

Santos Ltd (ASX: STO)

This energy company could be a top option for investors according to Morgans. Its analysts have put an add rating and $9.15 price target on the company’s shares. Based on the current Santos share price of $7.42, this suggests potential upside of over 23% for investors.

Its analysts like the company due to its growth profile, which was boosted from the recent merger with Oil Search.

The broker said: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe.”

“With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger,” it added.

Treasury Wine Estates Ltd (ASX: TWE)

Morgans is a fan of this wine giant and currently has an add rating and $14.06 price target on its shares. Based on the current Treasury Wine share price of $10.69, this implies potential upside of almost 32% for investors.

Its analysts are positive on its growth outlook and believe recent share price weakness has left its shares trading at a very attractive level. This is particularly the case in comparison to long term multiples.

The broker commented: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However once it comps China earnings, we expect TWE to deliver strong earnings growth from the 2H22 onwards. Organic growth will be supplemented by M&A.”

“On this front, we view TWE’s recent acquisition of Napa Valley luxury wine business, Frank Family Vineyards (FFV) as strategically important. This high margin business should see TWE achieve its US margin target two years earlier than planned. We see recent share price weakness as a great buying opportunity in this high quality company. The stock is currently trading at a material discount to its long term PE range,” it concluded.

The post 2 of the ‘best’ ASX shares to buy right now appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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